The Victorian Government has approved the Environmental Effects Statement (EES) for Viva Energy’s proposed liquefied natural gas (LNG) terminal in Geelong, paving the way for a major energy infrastructure development aimed at securing the state’s future gas supply.

The project, which includes an extension to the Geelong refinery jetty, a permanently moored floating storage and regasification unit (FSRU), and a 7-kilometer pipeline connecting to Victoria’s gas transmission system, is designed to address forecast shortfalls in gas supply from 2028.

Planning Minister Sonya Kilkenny concluded that the project could proceed with acceptable environmental impacts, subject to certain conditions. Once operational, the terminal would be capable of delivering over 120 petajoules of gas annually, with peak daily capacity reaching 750 terajoules—sufficient to meet both daily and seasonal demand across Victoria and southeastern Australia.

The LNG terminal would serve as a virtual pipeline, enabling the import of gas from Australian and international sources directly into the state’s major markets, including Melbourne and Geelong. By supporting gas-powered electricity generation, the project aims to enhance energy reliability for more than 2 million households and 65,000 businesses.

Viva Energy said the terminal will help deliver competitively priced gas, increasing market supply while minimizing the need for costly new pipelines. Chief Strategy Officer Lachlan Pfeiffer called the approval a “major milestone” for both the Viva Energy Hub in Geelong and Victoria’s broader energy security.

“Our LNG terminal offers scalable, flexible supply during high-demand periods and supports the transition to renewables by providing firming capacity as coal exits the energy system,” Pfeiffer said. He added that Viva Energy is now focused on securing commercial agreements to support a final investment decision.

Construction is expected to begin in the second half of 2026, with major works occurring in 2027. Viva Energy is evaluating capital and commercial structures to ensure the terminal is ready ahead of the projected 2028 supply gap.

The terminal will not only serve Victoria but also bolster supply across South Australia, Tasmania and New South Wales through the interconnected gas transmission network. It will form a core part of the Viva Energy Hub, which includes the Geelong refinery, strategic fuel storage, a hydrogen refueling station, and initiatives for low-carbon fuels and circular economy practices.

Supplying over 60% of Victoria’s gas needs and more than half of its fuel, the Viva Energy Hub is set to become a vital energy gateway, supporting economic growth and high-skilled jobs across the region.